5. Green Company has no beginning and ending inventories, and reports the following information for its only product: Direct materials used $475,000 Direct labor $100,000 Fixed indirect manufacturing $125,000 Variable indirect manufacturing $50,000 Variable selling and administrative $60,000 Fixed selling and administrative $25,000 Units produced and sold 150,000 Blue Company uses the absorption approach to prepare the income statement. What is the product cost per unit? A) $5.00 B) $5.25 C) $5.40 D) $5.57 6. Great Company has no beginning and ending inventories, and reports the following data about its only product: Direct materials used $450,000 Direct labor $150,000 Fixed indirect manufacturing $125,000 Fixed selling and administrative $150,000 Variable indirect manufacturing $75,000 Variable selling and administrative $110,000 Selling price(per unit) $80 Units produced and sold 20,100 Stone Company uses the absorption approach to prepare the income statement. What is the manufacturing cost of goods sold? A) $600,000 B) $800,000 C) $875,000 D) $1,010,000 C) $875,000 D) $1,010,000 7. Smart Company is trying to decide which product to manufacture. Expected direct materials costs are $6.00 per unit for each product. The expected direct labor costs are $3.00 per unit for one product and $5.00 per unit for another product. In choosing between the two products, the direct materials costs ar and the direct labor costs are A) irrelevant; irrelevant B) irrelevant; relevant C) relevant; irrelevant D) relevant; relevant